Wilmar posts 38.3% H2 earnings surge, trims dividend; 2026 to ‘remain challenging’

[SINGAPORE] Agribusiness Wilmar International on Thursday (Feb 26) posted a 38.3 per cent rise in net profit to US$815.9 million for its second half ended Dec 31, 2025, up from US$590.2 million for the same period a year prior.

The group attributed the gains mainly to strong performance in its feed and industrial products segment.

The group also recorded non-operating gains, mainly the recognition of a US$1.14 billion gain on remeasurement arising from changes in interest in its associate, AWL Agri Business.

Wilmar said it enjoyed a higher share from the results of joint ventures and associates in H2 FY2025, mainly from investments in China.

Earnings per share came in at US$0.131, up from US$0.095 for the same period in FY2024.

The board proposed a final dividend of S$0.10 a share, bringing the total dividend for FY2025 to S$0.14 a share, down slightly from S$0.16 a share in FY2024.

The agribusiness attributed the lower dividend to one-off non-core cash adjustments in FY2025.

Revenue for H2 FY2025 rose 3 per cent year on year to US$37.5 billion from US$36.4 billion.

For the full year ended Dec 31, 2025, net profit was up 20.6 per cent at US$1.41 billion. Revenue rose 4.5 per cent year on year to US$70.42 billion.

Wilmar noted that, under its feed and industrial products segment, there were “higher crushing margins and improved contributions from its sugar merchandising activities”.

However, overall performance for the segment was impacted by “compressed margins” in the group’s tropical oils business.

Wilmar’s plantation and sugar milling segment reported weaker profits amid softer sugar and palm oil prices, as well as lower fresh fruit bunch production.

Meanwhile, the group said its non-operating gains were “partially offset by compensation payments and provisions” made on its Indonesia operations, as well as provisions made on two ongoing legal cases in China.

Wilmar added that it has also “made a provision for losses” in relation to its Pakistan associated company.

Kuok Khoon Hong, chairman and chief executive officer of Wilmar, said that the group expects operating conditions for 2026 to “remain challenging”.

“Barring unforeseen circumstances, we expect results for FY2026 to be satisfactory,” he added.

Shares of Wilmar International shed 2.8 per cent or S$0.10 to S$3.50 on Thursday, before the news.